KARACHI, Dec 2: Stocks on Friday staged a snap recovery on heavy buying in leading index shares apparently ignoring possible negative fallout on the share business after the SECP directive about the election of non-members as chairmen of the bourses.

The market’s buoyant outlook is evident from a sustained increase in the KSE 100-share index, which soared by 145.88 points and breached through the barrier of 9,200 at 9,226.41 as compared to 9,080.53 a day earlier.

Heavy buying in leading base shares, notably OGDC, PTCL, PSO, National Bank and TRG, cement and bank shares led to the market advance and evoked a lot of sympathetic support on other counters having potential of capital gains.

“There is a loud whispering in the market that the SECP directive may be withdrawn after an intervention from higher quarters to ease the tense situation, as brokers and members are expected to take a firm stand on the issue, which aims at taking away all the power from them,” some analysts predict.

The broker optimism about the future outlook appears to be a double-edged weapon, analysts said. “On the one hand, they are defying the SECP directive to elect non-member chairmen on the bourses, and trying to bail out some trapped one from the long unsold positions on the other hand.”

The SECP denial about the withdrawal of its Tuesday’s directives should have, in normal conditions, prompted selling but brokers tried to ignore it as there could be many a slips between the cup and the lip at the implementation stage.

But some others fear there could be a major showdown between the bourses and the SECP on the issue in coming weeks and that could take away the current heat from the market followed by massive price erosions.

Pakistan Refinery and Unilever Pakistan were leading among the gainers, up Rs20.75 and Rs20, followed by PSO, Clover Pakistan, Indus Motors, Jahangir Siddiqui & Co, International Industries, Attock Petroleum, Suzuki Motors, Dawood Hercules and Lakson Tobacco, which posted gains ranging from Rs5.20 to Rs15.85. There were several other good gainers also.

Losses on the other hand were fractional and were led by Colgate Pakistan and Indus Dyeing, off Rs9 and Rs6, respectively. Fecto Cement, Javedan Cement, and Exide Pakistan also fell by Rs2.05 to Rs3.30.

Trading volume rose to 385m shares from the previous 336m shares as gainers maintained a strong lead over losers at 215 to 110, with 31 shares holding on to the last levels.

OGDC came in for strong buying after lean period and rose by Rs2.75 at Rs114 on 50m shares, followed by National Bank, easy five paisa at Rs184.40 after the hitting the day’s peak at Rs187.40 on 41m shares, PTCL higher by Rs1.95 at Rs64.05 on 37m shares, Fauji Fertilizer Bin Qasim, up Rs1.05 at Rs38.20 on 29m shares, TRG Pakistan, firm one rupee at Rs14.20 on 20m shares, Kot Addu Power, higher by Rs2.05 at Rs46.75 on 10m shares, and DG Khan Cement, firm by 25 paisa at Rs108.25 on 19m shares.

Other actives were led by Fauji Cement easy 10 paisa on 11m shares, Bank of Punjab, up one rupee also on 11m shares, Nimir Chemicals, up 45 paisa on 10m shares.

FORWARD COUNTER: MCB remained in strong demand for the second session and rose by another Rs1.60 at Rs165.35 on 25m shares, followed by National Bank, firm 45 paisa at Rs187.50, and OGDC, higher by Rs2.85 at Rs114.60 on 10m shares.